New Delhi, December 7: Union Finance Minister Arun Jaitley on Thursday said the government is committed to protecting the interest of the financial institutions and depositors. “The Financial Resolution and Deposit Insurance Bill, 2017 is pending before the Standing Committee. The objective of the government is to fully protect the interest of the financial institutions and depositors,” the Finance Minister said in a tweet.
Jaitley added that the government stands committed to this objective. According to Economic Affairs Secretary S C Garg, FRDI Bill proposes to protect existing rights of the depositors. “There is no dilution thereof. Instead, it enhances present protections in certain ways. Principal guarantee for PSU Banks’ depositors come from government ownership which also remains completely unaffected,” Garg said.
As per reports, the Centre had tabled the Financial Resolution and Deposit Insurance Bill, 2017 in August in the Lok Sabha, seeking to deal with the insolvency of financial service providers. It was then was referred to a Joint Committee of Parliament. In a statement released to the press, the Finance Ministry has clarified the existing provisions of deposit protection guarantee will be maintained in the proposed FRDI Bill as well.
Reports state that the Financial Resolution and Deposit Insurance Bill provides for the establishment of a resolution corporation with powers relating to the transfer of assets to a healthy financial firm, merger or amalgamation, liquidation to be initiated by an order of the National Company Law Tribunal.